By David Harrison 

The U.S. economy grew at a "slight to modest" pace over the fall in the latest indication that the economic recovery from the coronavirus pandemic has yet to pick up speed, a Federal Reserve report said Wednesday.

The report found that the recovery was proceeding on separate tracks, with the manufacturing, residential housing and banking industries reporting steady growth while commercial real estate and overall consumer spending remained weak.

Firms said they were "generally optimistic or positive" about the future but noted that there was still a lot of uncertainty in their outlook.

Despite the elevated unemployment rate, many employers are struggling to recruit new hires because workers are concerned about their health or lack access to child care, the Fed report said. Many firms have raised wages or offered flexible work arrangements in response.

The report, known as the Beige Book, is a collection of anecdotes from business contacts around the country. The Fed collected comments through Oct. 9.

Write to David Harrison at david.harrison@wsj.com

 

(END) Dow Jones Newswires

October 21, 2020 15:04 ET (19:04 GMT)

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